Decree-Law no. 20/2016 – Official Gazette no. 77/2016, Series I of 2016 - 04-20

In compliance with the Program of the XXI Constitutional Government, specifically with regard to the compromise to take initiatives aiming to promote foreign investment in Portugal, and considering the understanding according to which the corporate governance model is one of the decisive factors to obtain financing, Decree -Law no. 20/2016, 20 March 2016, which shall enter into force in July 1 2016, is published and produces the 41st amendment to the Legal Framework of the Credit Institutions and Financial Companies (hereinafter, “LFCIFC”), aiming to grant the credit institutions shareholders the possibility to re-evaluate the justification of statutory limits on ownership and exercise of voting rights.

This diploma adds article 13-C to the LFCIFC, under which a deliberation on the maintenance or withdrawal of the statutory limits to holding and exercise the voting rights of the shareholders of credit institutions is now mandatory at least once every five years. Moreover, this resolution, when proposed by the management board, shall not be subject to any limits on ownership or exercise of voting rights, nor to any quorum or aggravated majority requirements in relation to what is stipulated by the Law.

Under paragraph 3 of the same article, in case a deliberation did not take place until the end of each period, the statutory limits to holding and exercise the shareholders vo ting rights shall automatically expire. However, said resolution does not have to be express and can be implied from the rejection of the amendment or termination proposal.

The mutual agricultural credit banks and savings banks are excluded from the above.